Loans

12 Months Ended

Dec. 31, 2019

4. Loans

A summary of loans, net of deferred fees and origination costs, by category is as follows:

	At December 31,
(In thousands)	2019		2018
Commercial	$	1,302,209	$	1,291,568
Commercial Real Estate		2,142,057		1,930,742
Residential Real Estate		1,445,156		1,380,836
Indirect Auto		1,193,635		1,216,144
Specialty Lending		542,063		524,928
Home Equity		444,082		474,566
Other Consumer		66,896		68,925
Total loans	$	7,136,098	$	6,887,709

Included in the above loans are net deferred loan origination costs totaling $35.3 million and $43.5 million at December 31, 2019 and 2018, respectively. The Company had $11.5 million residential loans held for sale as of December 31, 2019. The Company had $6.9 million of residential loans held for sale as of December 31, 2018.

The total amount of loans serviced by the Company for unrelated third parties was $612.3 million and $557.9 million at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, the Company had $0.8 million and $0.5 million, respectively, of mortgage servicing rights.

At December 31, 2019 and 2018, the Company serviced $25.6 million and $27.2 million, respectively, of agricultural loans sold with recourse. Due to sufficient collateral on these loans and government guarantees, no reserve is considered necessary at December 31, 2019 and 2018.

FHLB advances are collateralized by a blanket lien on the Company’s residential real estate mortgages.

In the ordinary course of business, the Company has made loans at prevailing rates and terms to directors, officers and other related parties. Such loans, in management’s opinion, do not present more than the normal risk of collectability or incorporate other unfavorable features. The aggregate amount of loans outstanding to qualifying related parties and changes during the years are summarized as follows:

(In thousands)	2019			2018
Balance at January 1	$	1,638		$	1,577
New loans		587			260
Adjustment due to change in composition of related parties		389			-
Repayments		(448	)		(199	)
Balance at December 31	$	2,166		$	1,638